NEW FAQs RELATED TO FORMS OF PAYMENT

What forms of payment must a VSF accept?

Section 2303.159, Occupations Code, reads:

Sec. 2303.159. FORMS OF PAYMENT OF CHARGES. (a) The operator of a vehicle storage facility shall accept payment by an electronic check, debit card, or credit card for any charge associated with delivery or storage of a vehicle.
(b) In this section, "vehicle storage facility" includes a governmental vehicle storage facility as defined by Section 2303.155.

TDLR has always interpreted 2303.159 (a) to mean that a vehicle storage facility must have at least one of these forms of payment – electronic check, debit card, or credit card – to be in compliance. It has not interpreted this provision to mean that all three forms of payment be available.

How does the notice requirement in HB 2571, 81st Regular Session, affect the forms of payment?

TDLR does not interpret the notice requirements in HB 2571 to have any change on the forms of payment.

HB 2571 passed during the 81st Regular Session and will become law on September 1, 2009. HB 2571 does not change these requirements, but it does add the requirement that a vehicle storage facility post a sign that reads:

“This vehicle storage facility must accept payment by an electronic check, credit card, or debit card for any fee or charge associated with delivery or storage of a vehicle.”

What do I need to do on September 1, 2009, in order to be in compliance with the law?

On September 1, 2009, a vehicle storage facility needs to be able to accept at least one of these forms of payment – electronic check or debit card or credit card. It is not necessary for a vehicle storage facility to accept all three forms of payment.

In addition, a sign must be posted which reads:

“This vehicle storage facility must accept payment by an electronic check, credit card, or debit card for any fee or charge associated with delivery or storage of a vehicle.”

1. What is the Texas Towing Act and when will it become effective?

The Texas Towing Act contains new licensing requirements for tow truck operators, towing companies and for employees of vehicle storage facilities.  Licenses for tow truck operators and vehicle storage facility employees will not be required until September 1, 2008, however.  The Act also moves the current licensing of tow truck companies, tow trucks and vehicle storage facilities from the Texas Department of Transportation (TXDOT) to the Texas Department of Licensing and Regulation (TDLR).  The Texas Towing Act became effective on September 1, 2007.  However, all the functions and activities performed by TXDOT relating to tow trucks, towing operations, or vehicle storage facilities will be transferred to TDLR on January 1, 2008.

2. What does the Texas Towing Act do?

1. Establishes The Towing and Storage Advisory Board
2. Establishes three types of towing permits
1. Incident Management Towing Permit
2. Private Property Towing Permit
3. Consent Towing Permit
3. Requires a permit holder to maintain liability insurance for each tow truck
4. Requires continuing education
5. Requires drug testing of towing operators
6. Requires the creation of standards of conduct
7. Requires periodic and risk based inspections
8. Permits are valid for one year and must be renewed annually

3. Will TXDOT’s rules for tow trucks change?

A rule or form adopted by TXDOT that relates to tow trucks, towing operations, or vehicle storage facilities becomes a rule or form of TDLR on January 1, 2008.  The rules and forms will remain in effect until amended or replaced by TDLR.  Before any rules are changed or adopted by TDLR, we will seek public input.

4. What are the additional requirements for tow truck operators or companies?

The Texas Towing Act creates some additional requirements for towing companies: 1. applicants for licensure must submit evidence that they are in compliance with certain specified drug testing requirements, 2. any criminal conviction of a license applicant must be reviewed, and 3. periodic and risk-based inspections must be made.

LICENSING AND REGISTRATION

5. Who must be licensed or have a permit?

Currently, tow truck companies, tow trucks and vehicle storage facilities must be licensed or have a permit. On September 1, 2008, tow truck operators and employees of vehicle storage facilities must also be licensed.

6. How much does it cost to register?

Fees for applications are as follows:
Tow Truck Company Application,initial or renewal: $350
Tow Truck Operator (Driver) Application, initial or renewal: $100
Tow Truck Permit Application, initial or renewal: $75 per truck
Vehicle Storage Facility License Application, initial or renewal: $250
Vehicle Storage Facility Employee License Application, initial or renewal: $75

To stay informed of any fee or rule changes, please subscribe to our email notification system at http://www.license.state.tx.us/newsletters/TDLRnotificationLists.asp.

7. What are the different types of permits for tow trucks?

Tow trucks will be required to have a permit in one of the following areas:
1. Incident Management, which is required for a tow truck used to perform a non-consent tow initiated by a peace officer. Incident Management tow trucks may also do Private Property Tows and Consent Tows.
2. Private Property, which is required for a tow truck used to perform a non-consent tow authorized by a parking facility owner. Private Property tow trucks may also do Consent Tows.
3. Consent Tows, which is required for a tow truck used to perform a consent tow authorized by the owner. Consent tow trucks may only do Consent Tows.

8. What are the different types of licenses for tow truck operators?

Tow truck operators will also have the same three license types: Incident Management, Private Property, or Consent Towers. Each operator license type will have the same responsibilities and restrictions as the corresponding tow truck permit type.

9. What are the requirements of each license?

For trucks:

Incident Management Towing Permit – The owner must provide evidence that the tow truck is equipped to tow light-duty or heavy – duty vehicles according to the manufacturer’s towing guidelines and evidence of $500,000 of liability insurance and $50,000 in cargo insurance for the tow truck.

Private Property Towing Permit – The owner must provide evidence that the tow truck is equipped to tow light – duty or heavy-duty vehicles according to the manufacturer’s towing guidelines and evidence of $300,000 of liability insurance and $50,000 of cargo insurance for the tow truck.

Consent Towing Permit – The owner must provide evidence that the tow truck is equipped to tow light-duty or heavy-duty vehicles according to manufacturer’s towing guidelines and evidence of $300,000 of liability insurance. No cargo insurance is required for the consent towing permit.

For operators:

Incident Management Towing Operator License – The operator must be a licensed Texas driver and hold a certification from National Drivers Certification Program or another approved certification program. *  **

**Southwest Tow Operators has an approved certification test for first time license IM applicants. Click Here For Southwest Tow Operators Testing

Private Property Towing Operator License – The operator must be a licensed Texas driver and hold a certification from National Drivers Certification Program of the Towing and Recovery Association of America or another approved certification program.**

**Southwest Tow Operators has an approved certification test for first time license PP applicants. Click Here For Southwest Tow Operators Testing

Consent Towing Operator License – The operator must be a licensed Texas driver.

* Incident management towing operator for first renewal must complete a professional development course relating to towing that is licensed or certified by the National Safety Council or other course approved by TDLR.

10. What are the liability insurance and on-hook cargo insurance requirements for a tow truck?

11. Do I need to carry Workers' Compensation or accidental injury insurance coverage?

The Texas Towing Act does not require workers’ compensation or accidental injury insurance coverage.  However, other state, municipal or federal laws or codes may require these or other types of insurance.

12. My registration certificate was revoked, how do I re-register?

If your certificate has been revoked and you seek re-registration before January 1, 2008, you will need to contact TXDOT at 1-800-299-1700.

If your certificate has been revoked and you seek re-registration after January 1, 2008, you must file an application with TDLR.

13. How do I make changes to my original application?

If the changes need to be made BEFORE January 1, 2008, you will need to contact TXDOT at 1-800-299-1700.

If the changes will be made AFTER January 1, 2008, TDLR will accept notification of changes.  The requirements concerning the changing of an original application will be set out in the rules currently being developed.

14. I have to replace a vehicle, what am I required to do?

If the vehicle is a tow truck and you need to replace it BEFORE January 1, 2008, you will need to contact TX DOT at 1-800-299-1700.

If the vehicle is a tow truck and you need to replace it AFTER January 1, 2008, you will file an application with TDLR for a permit of the new truck.

15. Where do I send motor carrier registration applications and renewals?

TXDOT will continue to register motor carriers and process their renewals. TDLR will not register “motor carriers.”

16. Do you take walk-in registration applications and how long does it take to process an application?

Yes, we accept walk-in registration applications.  Licensing time frame is 10 days from receipt to issuance.  Incomplete applications, or applications that require an extensive review of criminal background information may take longer.

17. How do I check the status of my application?

You will be able to check the status of your application online.

18. Will a criminal conviction prevent me from getting a license?

Criminal convictions are reviewed on a case-by-case basis. Licenses may be denied based on the nature of the conviction and how long prior to the application the conviction occurred. Currently, very few license applications are denied due to an applicant’s criminal history.

19. Who is required to register with TDLR as a motor carrier?

No one will register with TDLR as a “motor carrier.” Instead, tow truck companies, tow truck drivers and the tow trucks themselves will be licensed by TDLR.

RENEWALS

20. When and how must licenses be renewed?

All licenses and permits must be renewed annually. Truck permits are renewed by completing the application, paying the fee and providing proof of insurance. Operator licenses are renewed by completing the application, paying the fee and completing the continuing education requirements. On the first renewal incident management operators must complete a professional development course relating to towing that is licensed or certified by the National Safety Council, or complete another course approved by TDLR.

21. Where do I renew my certificate of registration?

If you have a certificate for a tow truck or a vehicle storage facility that expires BEFORE January 1, 2008, you will renew with TXDOT.

If you have a certificate for a tow truck or a vehicle storage facility that expires AFTER January 1, 2008 you will renew with TDLR.

22. My license expires November 30, 2007. Who do I register with?

Until January 1, 2008, you will continue to apply for tow truck and vehicle storage facility licenses from TXDOT.

AFTER January 1, 2008, you will continue applying for licenses for towing companies, tow trucks and vehicle storage facilities at TDLR. 

New rules will be written by April 2008, which will govern the application process for tow truck drivers and vehicle storage facility employees.  Once the applications are available after April 2008, TDLR will begin to register tow truck drivers and vehicle storage facility employees.  Drivers and storage facility employees must be registered with TDLR by September 1, 2008.

23. How do I renew my tow truck operator’s license?

For fastest service, all tow operators may renew their license online at https://www.license.state.tx.us/App_Online/default.asp?LicenseType=TOW&bhcp=1. If you choose not to renew online, then you must return the renewal postcard mailed to you for processing by TDLR.

24. How much does it cost to renew my tow truck operator’s license?

LICENSE TYPE	ON-TIME RENEWAL	1-90 DAYS LATE	91 DAYS TO 1 YEAR LATE
TOW TRUCK OPERATOR	$100	$150	$200

25. Do I have to take continuing education courses to renew my license?

Yes, private property (PP) and consent tow (CT) operators must complete a total of four (4) hours of continuing education through TLDR-approved courses in order to renew their license. ***

***Southwest Tow Operators has approved Continuing Education (CE) courses for those renewing PP and CT licenses. Click Here For Southwest Tow Operators Approved Training Programs

Incident Management (IM) operators who are renewing for the first time must complete a professional development course relating to towing that consists of eight (8) hours of training. This course is required for the first renewal only, and is in lieu of the four hours of continuing education. After the first renewal, all renewals will require four hours of continuing education.

***Southwest Tow Operators has approved Professional Development Course (IM) for those renewing Im licenses for the first time. Once IM licensed tow operators have renewed their license for first time, because they are required to take an approved IM (Professional Development Course), they will then be required to take an approved CE course every year thereafter to renew license. Click Here For Southwest Tow Operators Approved Training Programs

26. What is a professional development course?

The professional development course is a required course that IM operators must complete before they renew their license for the first time. The course has at least 8 hours of training, including:

• at least 2 hours that are live demonstration and hands-on training; and
• at least 2 hours that are classroom training.

The course must be taken through a TDLR approved provider.

Click Here For Southwest Tow Operators Approved Training Programs

27. I have an Incident Management (IM) license. Do I have to take the professional development course and complete four hours of continuing education?

No. If you are an IM operator, and you are renewing for the first time, you are required to have completed a professional development course only. Then, for each subsequent renewal, you will complete the four hours of continuing education required for all tow operators.

28. Where can I find a list of TDLR-approved continuing education providers?

List of TDLR-approved providers and their contact information

Click Here For Southwest Tow Operators Approved Training Programs

29. When do I have to complete the continuing education courses?

You must complete the courses within the term of the license being renewed. For example, if your license expires August 1, 2009, the continuing education courses must be completed between August 1, 2008 and August 1, 2009.

For a late renewal, the courses must have been completed within the one year period immediately prior to your expiration date.

If you find that the hours for your completed courses have not been reported, please contact the education provider – it is their responsibility to report the hours to TDLR. If there is a dispute and the reporting issue is not resolved, you may file a complaint online.

30. How do I submit proof that I have completed a professional development course?

The information must be submitted electronically by the education provider. If your information has not been submitted to TDLR, you must contact the education provider. Do not send your certificates or paperwork to TDLR.

31. Where can I check to see if my completed courses have been reported?

Check your completed courses online.

32. I have a Consent Tow (CT) or Private Property (PP) license. Do I need to take a professional development course?

No, CT and PP operators are not required to complete a professional development course to renew their license. CT and PP operators are only required to complete four hours of continuing education for each renewal period.

33. Can the continuing education courses be completed online?

Yes, most of the education providers offer online courses. The courses are self-paced, and can be completed at your convenience.

Click Here For Southwest Tow Operators Approved ONLINE CE Courses

34. Can the professional development courses be completed online?

No. The professional development courses include live demonstration, hands-on training, and classroom training. They must be completed in person.

35. Does my TDLR license renewal fee include the cost of continuing education or professional development courses?

No. The fees for the courses are separate, and are established by and paid to the continuing education provider, not to TDLR.

36. Will continuing education courses be required in order to renew every year?

Yes, this is an annual requirement, authorized by Section 2308.157 of the Tow Trucks, Operators, and Vehicle Storage Facilities law, which took effect September 1, 2007.

More information about continuing education requirements

Learn more about the towing program, laws, and administrative rules

For questions about the towing program, please call Customer Service at 1-800-803-9202, or e-mail us at towing@license.state.tx.us.

COMPLIANCE AND ENFORCEMENT

37. What will happen to open complaints and investigations currently at TXDOT?

A complaint, investigation or other proceeding before TXDOT that is related to towing companies, tow trucks, towing operations or vehicle storage facilities will be transferred without change in status to TDLR on January 1, 2008.

38. Will there be inspections and when will they occur?

The Department will conduct periodic and risk-based inspections of businesses regulated under this chapter to ensure compliance with the law.  

Periodic inspections will occur at least once every two years.  The Department may conduct additional risk-based inspections if a company is found not in compliance with the law.  The Department may inspect a vehicle, a facility, business records, or any other place or thing reasonably required to determine compliance with the law.  The company may be required to pay for risk-based inspections.

39. Will a criminal conviction prevent me from getting a license?

Criminal convictions are reviewed on a case-by-case basis. Licenses may be denied based on the nature of the conviction and how long prior to the application the conviction occurred. Currently, very few license applications are denied due to an applicant’s criminal history.

INFORMATION AND STAYING INFORMED

40. How will I be notified of rule changes?

The easiest way to stay informed of rule changes and proposals for rule changes is to subscribe to our email notification system at http://www.license.state.tx.us/newsletters/TDLRnotificationLists.asp. Rule changes and proposals for rule changes are also published in the Texas Register.

41. Where can I get a copy of the proposed rules?

Proposed rules will be available for viewing and downloading on our website at http://www.license.state.tx.us/towing/towing.htm.

42. How do I obtain information regarding requirements for commercial driver’s licenses, drug testing, driver’s logs, equipment safety, and signs for my vehicle?

Requirements for tow trucks, tow drivers, and towing companies are in the Texas Towing Act.  New or modified requirements will be in the rules being developed by TDLR.

Requirements for commercial drivers and vehicles are under the jurisdiction of the Texas Department of Public Safety.  Contact the Texas Department of Public Safety at (512) 424-2000 or www.txdps.state.tx.us.

DRUG TESTING POLICY

43. What options do I have for the drug testing requirements?

You can choose one of three options:

• Select the TDLR Model Drug Testing Policy
• Choose a TDLR-approved drug testing consortium
• Mail, fax, or e-mail a copy of your drug testing policy to us for review and approval.

44. Where can I find the list of TDLR-approved drug testing consortiums?

The TDLR-approved drug testing consortiums are listed in the drop-down menu under “Drug Policy Update” in the TOOLS system.

45. How do I comply with the TDLR Model Policy?

By selecting the TDLR Model Policy on your application, you are confirming that your company drug testing policy will follow these general guidelines:

• You must have at least one scheduled drug test every year for each towing operator or employee, and random, unannounced drug testing annually.
• Employees must not engage in the manufacture, sale, distribution, use, or unauthorized possession of illegal drugs at any time.
• Employees must not take or be under the influence of any drugs, unless prescribed by the employee's licensed physician.
• If an employee is convicted of violating a criminal drug statute, they must inform their supervisor within five days of the conviction. If the employee fails to notify the employer, the employee can be fired.
• The company must notify TDLR of the conviction (including pleas of guilty and nolo contendere).
• Before taking a drug test, all employees must sign a drug testing procedures consent form. This form is available on our website at: http://www.license.state.tx.us/towing/drugtesting.pdf. This consent form should be kept on company premises at all times. Do not send this form to TDLR.

46. What types of tests are required?

There are three types of drug tests required:

• Pre-employment – must be taken before a final offer of employment.
• Annual – all employees must complete at least one scheduled drug test each year.
• Random - in addition to annual testing, employees are subject to random urine drug testing.

47. What types of drugs are included in the testing?

Marijuana, cocaine, amphetamines, phencyclidine (PCP), and opiates.

48. Is the company required to notify TDLR of a positive test result?

Yes, the company must notify us within 3 days of receipt of a confirmed positive test result. Fax a copy of confirmed results to (512)463-2951. The notification must include:

1. employee’s name;
2. employee’s license number;
3. date of the positive test;
4. substance detected by the drug test; and
5. disciplinary action imposed.

Please include a cover sheet with your contact information.

49. Do I need to send TDLR our negative test results?

No, do not send in negative test results. Keep them for your records.

50. What happens if an employee or applicant tests positive for illegal drugs?

• Applicants will be denied employment if they test positive on the pre-employment test.
• Once a positive drug test result has been confirmed, employees must stand down from all duties and may be subject to disciplinary action, up to and including termination.
• In determining the appropriate disciplinary action, the company may consider the employee’s work history, length of employment, current work assignment, current job performance, and any past disciplinary actions.
• No disciplinary action may be taken against employees who voluntarily identify themselves as drug users, obtain counseling, rehabilitation, and comply with return to duty and follow-up drug testing.

51. What type of information do I need to give my employees about drugs and drug testing?

Employers must display and distribute the following information to their employees:

1. company policy regarding the use of prohibited drugs and/or alcohol;
2. consequences or disciplinary action that may be imposed for violating the drug policy;
3. informational material on the physical and mental effects of drugs; and
4. an existing community services hotline number, available drug counseling, rehabilitation, and assistance program.

52. Can we file our own drug policy with TDLR?

Yes, you may submit your own independent drug testing policy for our review and approval. An independent policy must be at least as stringent as the TDLR Model Policy.

For more specific information on Drug Testing Policy rules and regulations, please see Section 86.710 (tow company) and Section 85.725 (VSF) of the Administrative Rules at: www.license.state.tx.us/towing/towing.htm